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International Stock Option Grants

International Stock Option Grants

“Our Company would like to issue stock options to a resident of Country X. Anything special we should consider?” Start-ups are notoriously short on cash. And many use service providers in other countries. Put those two things together, and stock options for everyone...
Forfeiture and Regrant

Forfeiture and Regrant

Sometimes a founder wants to lure a new executive to the company (or incentivize a current executive) with a meaningful stock grant, but there’s no room left in the company’s equity plan pool and the other shareholders aren’t excited about the potential dilution. So,...
Partnership Tax in 10 Easy Bites

Partnership Tax in 10 Easy Bites

Have you ever wanted to be able to talk like a tax lawyer? Come on, not even a little bit? Below are ten tax code sections which govern entities taxed as partnerships distilled into their most basic concepts. For illustrative purposes throughout, let’s pretend you...
Services as Payment for Stock

Services as Payment for Stock

Occasionally, I am asked if a company can consider employee services as payment for stock. The thought process goes like this: On a date when ABC Inc. stock is worth $1 per share the company grants a share to each of Employee A and Employee B. The shares are either...
Rolling Equity

Rolling Equity

You founded a company and the time has finally come to sell. For years you’ve dreamt of the day when you can turn your illiquid stock into cold hard cash and buy a house on the beach and retire. Hang on tight, that day might not be here yet. It’s very common for a...